Making Tax Digital Update 2019

​For businesses trading above the VAT threshold, the ability to log onto HMRC and manually complete and submit a VAT return is progressively being removed.  

Believe it or not mid July HMRC were saying that only 25% of businesses that need to swap over have done to date!

The following changes are taking place:
 

1. HMRC are changing servers and the functionality to submit VAT returns the old fashioned way will not be available to many businesses
2. Businesses not only will need to obtain compliant software but also a switch to MTD via the Gateway will be required – both steps are essential – to switch to MTD, see the link below https://www.gov.uk/guidance/sign-up-for-making-tax-digital-for-vat
3. You will be required to keep digital records of your VAT returns for 6 years
4. This is being progressively rolled out over the current quarter and the following deadlines might be helpful:

 
June Quarter Ends – by 30 July
July Quarter Ends – by 29 August
August Quarter Ends – by 27 September
 

Clients preparing their own VAT returns:
 

1. You will need to check with your software supplier that they are MTD compliant – most of the major names are working on this but people using older Sage desktop versions should check for upgrades that are MTD compliant
2. You may need to activate your software
3. You will need to check your HMRC log in and ensure it is MTD ready – see the link above

 
For clients who use book keepers and myself, we are in the process of setting up agent services accounts and securing additional software as we’re ready in good time.
 
Remember this is only for businesses trading above the VAT threshold of £85,000!  I’ve prepared some short videos to help.